By By SUZANNE CARLSON Daily News Staff
Copyright virginislandsdailynews
A St. Thomas company that suffered from erroneous estimated billing by the V.I. Water and Power Authority is still fighting for a full refund, despite reaching a settlement in court.
LS Holding Inc., which operates the Little Switerzland jewelry store on Dronningens Gade, filed a complaint against WAPA in July 2022.
According to the complaint, the company subdivided the location in 2019 and installed new electrical meters to serve the additional units, and WAPA created accounts for the three meters.
WAPA removed the building’s original meter from service in October 2019, but “continued to bill the Original Account an ‘estimated rate’ for the entire building in addition to billing the newly installed Meters for their respective electrical usage,” according to the complaint.
When the company discovered WAPA’s mistake, it presented evidence that it was entitled to a refund, which WAPA refused to issue. The company subsequently sued for breach of contract, unjust enrichment, and unfair trade practices.
The company requested judgment totaling $100,426, plus attorney’s fees, and reached a mediated settlement agreement with WAPA in November for $120,000.
WAPA agreed to pay $75,000 within 90 days, and the remainder of the $120,000 was to be paid or credited to the company’s account.
WAPA provided a $24,000 credit in March, as well as a check for $75,000.
But $21,000 in unpaid credit still remains, and LS Holding filed a motion Monday, asking the court to enforce the settlement agreement after six months of stonewalling by WAPA.
The motion by attorney W. Mark Wilczynski also requests the court order WAPA to pay interest and attorney fees to cover the costs the company “has had to expend to force WAPA to complete its obligations under the settlement agreement.”
WAPA has been struggling to pay debts to a variety of entities, including former fuel supplier Trafigura, which is still fighting in U.S. District Court to enforce a 2017 consent judgment in which WAPA agreed to pay $24.5 million.
That amount remains outstanding and has accrued $6.85 million in interest, and Trafigura attorney Joseph DiRuzzo has been asking the court to force WAPA to pay the total of $31.32 million.
In August, WAPA’s assistant general counsel, Patricia Quinland, argued that the judgment “is unenforceable as a matter of law,” because under the V.I. Code, “WAPA is exempt from execution and other judicial process against its property.”
In a filing on Sept. 3, DiRuzzo argued that WAPA’s interpretation of the law “must be rejected.”
Quinland responded Friday, reiterating WAPA’s position that even though the utility had agreed to pay its overdue fuel debt to Trafigura eight years ago, the law does not allow the court to execute a judgment against WAPA property.
A judge has not yet ruled on the motions.
Meanwhile, a lawsuit filed against WAPA by the V.I. Government Employees Retirement System in 2022 is also still pending.
GERS asked the court to order WAPA to pay $7.75 million in outstanding debt to the pension system, plus interest. According to the complaint, WAPA failed to not only pay millions in employer and employee contributions, the utility also deducted loan payments and membership service payments from employee paychecks but failed to remit them to GERS.
The case has dragged on for more than three years, and Superior Court Judge Kathleen Mackay issued a scheduling order in May.
Mediation must be completed by March 27, and Mackay ordered the parties to be ready for trial by November 2026.